Colorado Short Sales 2025: Rising Foreclosures and Why Agents Should Prepare Now
If you’ve been watching the numbers in Colorado lately, you’ve probably noticed a clear trend — foreclosure activity is climbing again. According to ATTOM’s U.S. Foreclosure Rates by State – September 2025 report, one in every 5,215 housing units in Colorado faced a foreclosure filing last month — that’s 488 filings statewide, with Washington, Rio Grande, and Lake Counties leading the way.
While Colorado’s overall rate is still below the national average, the trajectory is unmistakable. ATTOM’s Q3 2025 Foreclosure Market Report shows a 17% year-over-year increase in total U.S. foreclosure activity. Foreclosure starts are up 16%, and completed REO repossessions have jumped 33% compared to last year. Those national pressures are flowing directly into state-level markets like Colorado — and for real estate agents and title professionals, that means short sales are back on the radar.
A Shift That’s Already Visible in County Records
At the county level, activity is picking up. Weld County’s pre-sale lists for September show a growing slate of scheduled auctions. Arapahoe County’s October 8–14 postings include multiple Notices of Election and Demand (NEDs) — the first formal step in Colorado’s foreclosure process.
These data points align with the broader national trend: foreclosure filings nationwide rose roughly 20% year-over-year in September 2025, according to ATTOM’s monthly report.
So what does this mean for Colorado’s housing professionals? More homeowners are falling behind, lenders are restarting dormant default pipelines, and agents are again being asked the question:
“Can we sell this home before foreclosure hits?”
Why Agents and Title Companies Should Be Ready for Short Sales
For many distressed homeowners, a short sale — selling for less than what’s owed with lender approval — is the best possible outcome. It preserves dignity, prevents foreclosure, and often provides relocation assistance at closing.
But short sales require expertise and coordination — and that’s where agents and title partners can add tremendous value.
When handled correctly, a short sale can:
- Protect your seller from the long-term credit hit of foreclosure.
- Secure commission for the listing agent that would otherwise be lost.
- Allow the title company to facilitate a clean transfer instead of a messy REO process.
- Help buyers purchase at a fair price without the delays or risk of post-foreclosure title defects.
Yet, despite these benefits, many deals still fall apart due to missing documents, poor communication with the lender, or misunderstandings about investor guidelines.
How Crisp Short Sales Helps Agents Close
At Crisp Short Sales, we partner with real estate agents and title companies throughout Colorado and across the U.S. to manage the entire short sale process from start to finish — from document prep to lender negotiation to final approval.
Our team handles the complex, time-consuming parts — so you can focus on your clients and your next listing.
If you’re an agent helping a seller in default, or a title company looking to ensure your next distressed transaction closes smoothly, we’re here to help.
We manage every type of short sale, including those involving:
- FHA, VA, and conventional loans
- Second liens and HELOCs
- Solar liens, HOA judgments, and municipal code liens
Because we work directly with servicers and investors every day, we know how to navigate lender requirements, escalate valuation disputes, and move files efficiently toward closing.
Helping real estate agents close short sales faster is what we do.
Colorado Market Outlook: 2026 and Beyond
Given the national increase in delinquencies and foreclosure starts, we expect short sales to continue trending upward through early 2026. Rising rates, inflation pressure, and pandemic-era forbearance exits have created a mix of homeowners who are equity-thin or upside-down again.
Colorado’s strong appreciation since 2020 helped buffer the first wave, but as interest-rate resets and job market shifts hit households in Q4 2025, we’re likely to see more listings that simply can’t sell fast enough to cover what’s owed.
Agents who prepare now — and build a relationship with a trusted short sale negotiation team — will be in position to capture those listings and close them efficiently.
If you or your team are seeing early signs of distress in your pipeline, take a moment to learn more about how we help homeowners and agents through short sales or start a new short sale file here.
Key Takeaway for Agents and Title Companies
Short sales aren’t just coming back — they’re already here. And in Colorado, where foreclosures are climbing in both metro and rural counties, being ready now means you can serve more clients, protect more deals, and strengthen your reputation when other agents are still trying to catch up.
If you’ve got a file that looks like it’s heading toward foreclosure, reach out. We’ll help you turn it into a successful short sale closing.